Orco begins arbitration proceedings with Croatia

Orco Property Group has filed a notice that could mark the first step in potential arbitration proceedings over its investment in the island resort of Suncani Hvar. It’s pointless to speculate which way this spat is going, though things don’t exactly look amicable at the moment. Orco revealed that the meeting last Monday between its CEO JF Ott and Croatian Privatization Fund officials last all of 20 minutes, ending about 24 hours before Ott was detained by police for questioning.

“Orco’s experience unfortunately is that the business environment in Croatia is deteriorating rather than improving,” said Marija Hrebac, Head of Orco’s activities in Croatia. “Rather than attempt to promote private investment, the State Privatization Fund has ignored Orco’s efforts to realize the potential of the Suncani Hvar development on the Croatian coast,” she said.

All in all, said Hrebac, they “are not signs of a Government that welcomes foreign investment.” Indeed.

Ott released a video statement late last week in reaction to the incident in Zagreb that you can watch here.